CSG Goes on Offensive: Four European Deals and a New Tank Reshape the Defence Group’s Profile
23.05.2026 - 12:12:03 | boerse-global.de
The Czechoslovak Group is putting diversification into practice at speed. While some defence peers are still drafting roadmaps, the Slovak conglomerate has inked stakes in four countries simultaneously, unveiled a medium battle tank, and watched its Ukraine revenue share shrink to around a fifth from over two-fifths two years ago. The message from Bratislava is clear: CSG is building a multi-layered European defence footprint, not just riding the war demand wave.
The numbers from the first quarter provide the financial backbone for that narrative. Revenue hit €1.544bn, up 13.8% year-on-year, with the Defence Systems segment surging 26.5% to €1.251bn. Within that, Land Systems roared ahead 82.8% to €173m, while medium- and large-calibre ammunition rose 22% to €1.049bn. The Ammo+ segment, however, slumped 20.5% to €291m, a reminder that not all divisions are firing on all cylinders. Operating EBIT reached €372m, a margin of 24.1%, and management confirmed full-year guidance of €7.4bn–€7.6bn in revenue with an adjusted EBIT margin between 24% and 25%. The medium-term target ranges from 26% to 28%.
The order book tells the demand story: the backlog swelled from €15bn at the end of 2025 to €17bn, while the negotiation pipeline stands at €27bn. Geographically, the Ukraine share dropped to around 20% — down from 42% in 2024 — as CSG spread its bets. Europe excluding Ukraine accounted for 49% of Q1 sales, the US for 16%, and NATO countries collectively 64%.
At the IDEB 2026 defence fair in Bratislava, CSG rolled out the CFL-120 Karpat, a 34-tonne medium tank packing a 120mm main gun in Leonardo’s HITFACT® MkII turret, capable of 70 km/h and a 450 km range. The partnership with Turkey’s FNSS couples the latter’s tracked-vehicle expertise with CSG’s Slovak production capacity, and the door is open for additional platforms. The Karpat will go head-to-head with BAE Systems’ CV90120 and OTOKAR’s TULPAR in a segment set to shape European procurement for years.
Should investors sell immediately? Or is it worth buying CSG?
That product push is matched by a corporate expansion spree. In Hungary, CSG took a 49% stake in 4iG Space & Defence Technologies, giving it indirect control of 37% of Rába Automotive, along with contracts to produce and supply military vehicles and a potential role in the Hungarian HIMARS programme. In Austria, its first foray into the country, CSG acquired a 49% interest in Hirtenberger Defence Systems, a maker of mortar systems and ammunition in 60, 81 and 120 mm calibres. The deal still awaits regulatory clearance. In Poland, it deepened ties with Polska Grupa Zbrojeniowa and reached a preliminary agreement to take over DOMAR MS, a producer of wiring harnesses and connectors for defence systems. In Greece, a newly formed joint venture, Hellenic Ammunition S.A., with state-owned Hellenic Defence Systems will produce large-calibre ammunition at Lavrio under a 25-year management contract. The facility is already turning out 155 mm rounds.
CSG is scaling up its own munitions capacity in parallel. By the end of 2026, in-house production of large-calibre rounds is expected to reach around 850,000, up from 550,000 last year. Including reactivated lines, the group targets more than 1.25 million rounds. A new line in Slovakia will add 70,000 rounds annually, pushing total capacity roughly one-fifth higher by 2028.
The stock’s reaction has been choppy but ultimately positive. The shares ended Friday at €18.70, down 3.4% on the day, yet still up roughly 14% over the week. The intraday range was €18.56–€19.17, while the week’s swing stretched from €15.24 on Monday to €19.83 on Thursday — a 30% bandwidth. That puts the price far from the 52-week high of €33.81, and well below the €25 IPO admission price from January. The 50-day moving average of €21.90 sits about 15% above current levels. On the support side, the zone between €18.56 and €17.56 is being watched; if it holds, the Q1 momentum could continue. A break lower would bring the week’s low of €15.24 back into focus, not far above the 52-week trough of €15.24 itself.
CSG at a turning point? This analysis reveals what investors need to know now.
Analyst sentiment remains uniformly bullish. All ten analysts covering CSG rate the shares a buy, with a consensus price target of €32.85. Moody’s upgraded the group’s secured debt to Baa3, while Fitch affirmed a BBB- rating with a stable outlook. The half-year results, due on 7 August, will offer the next test of whether the diversification push is translating into sustained earnings growth.
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